With plenty of vacant homes, there’s just not enough demand to necessitate building more new homes. So why are they being built?» Read More
I've never claimed to be an economist (just play one on TV), but I have held a few yard sales in my time, so this I know: If something isn't selling, lower the price. So how can new home sales be reportedly dropping 9 percent while the price of a new home rose month-to-month from $229,500 to $239,100?!
So I was clicking through all the sale spams in my inbox this morning -- from all the major retailers -- offering me 25 to 60 percent off on cashmere items, plasma TVs, sateen sheets and unwanted DVDs. Suddenly it occurred to me that one group of retailers was conspicuously absent: America’s big home builders.
I'm out of the office today, but I'll be back -- and blogging -- on Wednesday. Happy Holidays!
The folks at HUD felt that my blog of yesterday left out some key points, namely, their side of the story, so I am happy to post a reply directly from them.
Betting on real estate these days is not for the faint of heart. Between the housing correction, economic uncertainty, the credit crisis and predicted softening in the commercial property markets, determining where to invest for future returns requires an extra dose of due diligence and, let's face it, good old-fashioned courage.
Cramer makes the call on viewers' favorite stocks.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
U.S. stocks closed lower Monday as major Dow components and financials outweighed hopes for a Fed rate cut and a government plan to rescue at-risk homeowners.
Stocks closed mostly higher on expectations that the Federal Reserve will cut interest rates and the U.S. government will help homeowners recover from the subprime mortgage crisis.
Shares of homebuilder stocks were trading higher on Tuesday after Pulte Homes reaffirmed its fourth-quarter outlook late Monday.
Stocks closed higher after another volatile session, helped by a rally among energy shares as oil soared to a record high close of $98 a barrel.
D.R. Horton, the largest U.S. home builder, Tuesday reported a quarterly loss after taking charges for the lower value of land and other housing-related inventory, a reflection of the sagging U.S. housing market.
One of my mother's favorite lines is the one about not saying anything if you can't think of something nice to say. Well that was the story of the markets Monday. What a day of angst. Look at this headline from a note sent by MF Global's Andy Brenner Monday afternoon: "The market has traded like a crazed man with no liquidity." Yikes.
Stocks fell after Fed Chairman Ben Bernanke said the housing slump is likely act as a drag on to U.S. economic growth, sparking investor concerns. "It was just last month Bernanke was saying things were contained, but now he's saying housing troubles can spread," said Brian Hicks, president of Wealth Daily. "This-flip flop in the last month has really spooked the markets."
D.R. Horton, the largest US home builder, Tuesday said orders for new homes plunged 39 percent in its fourth quarter amid a spike in cancellations, as the US housing market continued to skip along rock bottom.
The problems today: 1) Financials. For a view of why traders are now very worried about Q4 earnings for financials, look no farther than KeyCorp. Q3 earnings and Q4 guidance were both below expectations; there were strains from fixed income markets particularly in commercial real estate, and rising problems with residential construction loans.
PCP and Goodrich aren't just aerospace plays. Add them to the list of booming infrastructure names, too, Cramer said. Also, the best way to buy homebuilders - and the best homebuilder to buy.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
Forgive me for posting a little bit late today, but I’ve been waiting for a call back from the press contact at D.R. Horton all morning, and now that it’s afternoon, I’ve decided to give up. I called the company (three times) to ask for a bit more information regarding an auction of 53 new D.R. Horton-built homes in San Diego this weekend.
There was more bad news for the housing sector Tuesday. Both sales and prices of existing homes continued to fall, while inventories rose.
Builder Lennar, the No. 2 U.S. home builder, Tuesday reported its worst-ever quarterly results as the crumbling U.S. housing market led to a much wider-than-expected loss, sending its shares down to a five-year low.
The slump in housing stocks to new four-year lows is hurting some well-known investors who recently added home builders and housing-related stocks such as KB Home and Pulte Homes to their positions.